You should be able to use that to trigger some sort of event on the remote server that performs an update.
I’ve done stuff like that (in my case CVS) to run automated unit tests, but for me anyway, it was a lot more trouble than it was worth.
If you’re doing it with a devel server and want to edit the files using a windows PC, you might be better off just using a network filesystem or an editor with built in ftp? (I could see a svn commit/update cycle every single time you want to see if the page loads being a real hassle and creating kind of a mess, when really you just want to do development)
I could see this creating a problem if someone commits a mistake and it gets automatically updated on your production website.
What you are talking about is called continuous integration. Its kind of the brains of the agile deployment operation. Look at products such as Jetbrains TeamCity, it should be able to do what you need.
You could also take the simpler approach and use a script to do a svn update every 5 minutes or so.